Universal Logistics Holdings, Inc. (NASDAQ:ULH), is not the largest company out there, but it saw a significant share price rise of 44% in the past couple of months on the NASDAQGS. The recent rally in share prices has nudged the company in the right direction, though it still falls short of its yearly peak. As a small cap stock, hardly covered by any analysts, there is generally more of an opportunity for mispricing as there is less activity to push the stock closer to fair value. Is there still an opportunity here to buy? Let's take a look at Universal Logistics Holdings's outlook and value based on the most recent financial data to see if the opportunity still exists.

What Is Universal Logistics Holdings Worth?

The stock seems fairly valued at the moment according to our valuation model. It's trading around 13.09% above our intrinsic value, which means if you buy Universal Logistics Holdings today, you'd be paying a relatively reasonable price for it. And if you believe the company's true value is $39.84, then there isn't really any room for the share price grow beyond what it's currently trading. Furthermore, Universal Logistics Holdings's low beta implies that the stock is less volatile than the wider market.

What kind of growth will Universal Logistics Holdings generate?

Future outlook is an important aspect when you're looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Although value investors would argue that it's the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. With profit expected to grow by a double-digit 16% in the upcoming year, the short-term outlook is positive for Universal Logistics Holdings. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation.

What This Means For You

Are you a shareholder? It seems like the market has already priced in ULH's positive outlook, with shares trading around its fair value. However, there are also other important factors which we haven't considered today, such as the track record of its management team. Have these factors changed since the last time you looked at the stock? Will you have enough confidence to invest in the company should the price drop below its fair value?

Are you a potential investor? If you've been keeping tabs on ULH, now may not be the most optimal time to buy, given it is trading around its fair value. However, the positive outlook is encouraging for the company, which means it's worth further examining other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.

In light of this, if you'd like to do more analysis on the company, it's vital to be informed of the risks involved. Be aware that Universal Logistics Holdings is showing 3 warning signs in our investment analysis and 1 of those is concerning...

If you are no longer interested in Universal Logistics Holdings, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.